JST Second Round of Burn Completed, Price Begins to Rise: Is This a Signal of a New Uptrend?

Yesterday, JustLend DAO officially completed its second round of JST token repurchase and burn, marking a further deepening of the $JST deflationary mechanism. Today, $JST price has started to rebound, currently around $0.04186 USD, up approximately 2.8% from yesterday. Will this trigger a sustained rally like after the first burn? Let’s analyze the details and market dynamics professionally.

Details of the Second Burn Round

This time, JustLend DAO used protocol net income (about $10.19 million USD) plus previous reserves (about $10.34 million USD), totaling approximately $21 million USD, to buy back and permanently burn 525 million JST tokens, accounting for 5.3% of the total supply. As of now, the total JST burned has reached 1.08489 billion tokens, representing 10.96% of the total supply, further reinforcing JST’s deflationary nature.

The core of this mechanism is a closed-loop model: protocol income → buyback → burn → value appreciation. All operations are transparently executed on the TRON blockchain, avoiding risks of human intervention. Compared to other DeFi projects (such as sporadic burns of UNI or AAVE), JST’s quarterly buybacks are more systematic and sustainable, with funding directly sourced from the platform’s real usage rather than inflation emissions.

Official Announcement Link:

• JustLend DAO completes second round JST buyback and burn announcement:

Proof of Burn:

JST Price Rise: Will It Repeat the Sustained Uptrend After the First Burn?

Reviewing the first burn (October 21, 2025), JustLend DAO burned 559.89 million JST (about 5.66% of supply), worth approximately $17.7 million USD. Subsequently, JST’s price experienced a significant short-term rebound, with gains exceeding 10%, maintaining a relatively stable upward trend over the following weeks. This was driven by scarcity effects from reduced supply and a recovery in overall DeFi activity within the TRON ecosystem.

Today’s price increase, though modest (about 2.8%), already shows an initial market response to the burn event. Considering the current crypto market environment—Bitcoin’s dominance stable, DeFi TVL rebounding—this second burn could amplify similar effects. However, whether it can “continue to rise” depends on multiple factors:

1. Macroeconomic Impact: If the global economy recovers or the Federal Reserve adopts easing policies, risk assets like JST will benefit; conversely, geopolitical risks or tighter regulations may suppress gains.

2. Internal Ecosystem Dynamics: Continued growth in JustLend’s lending volume and USDD integration will provide more funds for future quarterly burns, supporting long-term deflation. Currently, JST is transitioning from a governance token to a “income-backed” asset, which is relatively unique in DeFi.

3. Technical Analysis: JST is currently at a key support level (around $0.04 USD). Breaking through the resistance at $0.045 USD could open a medium-term upward channel. However, short-term volatility should be watched, as RSI indicates neutrality.

My personal view: The second burn reinforces JST’s long-term value narrative. Compared to the first, it’s more like a “pattern establishment” rather than a single event. This could drive a steady 10%-20% growth in the coming months, but not explosive gains—since the market has gradually digested the deflationary expectations.

JST’s potential lies in its sustainable mechanism. If TRON DeFi continues to expand, it could become an undervalued blue-chip!

@justinsuntron @DeFi_JUST #TRONEcoStar